Bye bye GM/Chrysler/Ford??

[teddy]

"with few exceptions", err name them, I can't think of a single decent American car

[kamui]

It's that kind of short term thinking that got the car industry in a mess. There was a noticeable decline in the sale of SUVs and Hummers when the oil price spiked. It's come down a bit recently so maybe people will feel OK about gas-guzzlers...for a week or two.

 

In Europe the 'Oil Crisis' of 1973 initiated the change of minds of consumers as well of the car industry. Now, 35 years later the reality is catching up with the US consumers and industry. It is no surprise that neither the consumers nor industry was prepared for the oil price explosion earlier this year.

It took less than 12 months to destroy a whole industry.

 

I am quite sure that one or two of the Big Three won't survive.

Also I am quite sure that the oil price explosion has changed the mind set of the US consumers for the upcoming years, which means that SUV's will more or less vanish in the next 5-10 years.

 

 

 

[allistar]

How about pick up trucks and cargo vans?

[Steve]

For a very short time immediately after the '73 oil crisis the U.S. focused on other means of energy (solar, wind, etc.).

 

Jimmy Carter initiated tax breaks and tax write offs if one had a business that went into alternate energy sources.

 

The whole thing ended up being one of the biggest tax shelters for the rich ever. The upper class would invest in an energy business. The business would announce massive losses. Due to the tax breaks at the time you could write off your share of the tax loss. Ended up costing us billions in tax revenue. Mainly the rich benefited from it.

 

The car makers made smaller cars, not very good in quality, then as oil prices seemed to be better they started building bigger.

 

The car companies knew the SUV and truck market wouldn't last. They were all concerned with short term profits. Japanese companies got into it as well since the profits were massive. Toyota has losses but they are in a better financial position to ride it out, Detroit isn't.

 

I doubt if the American public will go along with bailing out a Japanese company. The only way I can see that happening is if the Republican senators from the southern states that have these Japanese and German manufacturing plants can sell the American public on the money being to save 'American jobs'. It would be a tough sell.

 

Americans like big cars. Its cultural. That won't completelly go away unless things (like oil prices) stay high for a prolonged period of time.

[teddy]

How about pick up trucks and cargo vans?

 

They are not cars.

 

Honestly, some people may wax lyrical about the Dodge Chaser, the Ford Mustang or the Corvette, but in reality they are all utter, utter, utter shite compared to any decent European car or any average European car for that matter.

 

[Guest lazyphil]

my uncle owns a genuine english car. a morgan, afaik the only true all out english owned and designed car maker? fantastic to drive but at dead slow speed you need arms like mike tyson to steer it!!.......built in some outhouse in malvern i think!

[Hugh_Hoy]

I think that average Euro cars might be MARGINALLY better, but waaaaaay over-priced for what you get. I have never owned a Euro-produced car, cuz they've either been shit or vastly over-priced for what I use a car for. I have/do own a Jap car...Toyota Avalon (basically a Lexus without the $10,000 "badge"). It's a good car, but so is my Buick

 

 

HH

[kamui]

For a very short time immediately after the '73 oil crisis the U.S. focused on other means of energy (solar, wind, etc.).

 

Jimmy Carter initiated tax breaks and tax write offs if one had a business that went into alternate energy sources.

 

The whole thing ended up being one of the biggest tax shelters for the rich ever. The upper class would invest in an energy business. The business would announce massive losses. Due to the tax breaks at the time you could write off your share of the tax loss. Ended up costing us billions in tax revenue. Mainly the rich benefited from it.

 

The car makers made smaller cars, not very good in quality, then as oil prices seemed to be better they started building bigger.

 

The car companies knew the SUV and truck market wouldn't last. They were all concerned with short term profits. Japanese companies got into it as well since the profits were massive. Toyota has losses but they are in a better financial position to ride it out, Detroit isn't.

 

I doubt if the American public will go along with bailing out a Japanese company. The only way I can see that happening is if the Republican senators from the southern states that have these Japanese and German manufacturing plants can sell the American public on the money being to save 'American jobs'. It would be a tough sell.

 

Americans like big cars. Its cultural. That won't completelly go away unless things (like oil prices) stay high for a prolonged period of time.

 

Thanks for the information.

 

In regard to the oil price, when the recession is over the price will go up again and will go even further up after...

 

PS: One huge difference between the USA and Japan/Europe is that we have very high taxes on gas which of course is a huge incentive to purchase less gas guzzling cars. While the US kept the tax on gas extremely low for to keep the American way of life running.

[teddy]

I think that average Euro cars might be MARGINALLY better, but waaaaaay over-priced for what you get. I have never owned a Euro-produced car, cuz they've either been shit or vastly over-priced for what I use a car for. I have/do own a Jap car...Toyota Avalon (basically a Lexus without the $10,000 "badge"). It's a good car, but so is my Buick

 

 

HH

 

I suppose you don't really know what you are missing if you think the Buick is a good car. European cars are way way ahead of the crap the US produces.

 

If I had lived in UK all my life I would have just assumed that American cars where just as good as our cars but just looked different. However, once I moved to Dubai I was exposed to the crap made by Chevrolet, Chrysler, Jeep etc.

 

I stupidly bought a brand new Mustang because I thought they were supposed to be a good drive. I sold it after a year when it started to fall apart, the build quality was appaling.

 

I will never understand why the US cannot build a half decent car

[Guest lazyphil]

i should think most africans think europeans drive around in gas guzzling tanks like volvo, audi and mercedes......just as we do about americans. its all relative....we are a wee bit behind yanks in energy usage per head of population compared to the friggin grand canyon size gap between us and the 3rd world.....but keep looking accross the atlantic if it helps you feel more smug!!